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August 12th, 2009 8:22 AM by David W. Welch
With the heat index, we had several days in July that felt like it was more than 100 degrees. That was about as hot as our real estate market here in Orlando. For the second month in a row, we closed more than 2,100 sales with 2,141. That is about a 45% increase over July 2008. Even more impressive is the number of new contracts written last month. In July 3,696 properties went pending in our MLS. That was the fourth month in a row with more than 3,400 new contracts. We would be on fire here, if the banks would start approving short sales, contracts on their REO's, and loans for qualified buyers. The best indicator of the log jam that banks have become to the real estate closing process is the rapidly growing number of pending sales here in Orlando. Currently there are 7,713 contracts pending. That represents a 3.6 month supply of homes at last month's sales pace waiting to close. That is 108 days worth of sales, and it is only taking 103 days on average to get a home under contract.
The other two items of note in last month's official sales numbers are the inventory at 17,231, which is down from 24,742 in July of 2008. That is better than a 30% drop in the number of active listings in a year. The months supply of homes available is 50% lower. Last July, with a sales pace of 1,472 properties we were looking at a 16.8 month supply of homes for sale. This July the months supply of inventory is less than half at 8.05. The other key number is the median price, which rose for the second month in a row. The $135,000 sales figure marks the fourth month in a row of stable or rising prices. August and September usually have a drop off compared to June and July, so I don't expect sales numbers quite as rosy over the next couple of months. However, with the deadline for the first time home buyer tax credit looming, I suspect we will continue to see strong sales through November. I am watching for October to be a very good month.
Orlando Real Estate, David Welch Real Estate Optimist